Purpose – What copulas are, their estimation, and use is illustrated using a geographical diversification example. To accomplish this, dependencies between county-level yields are calculated for non-irrigated wheat, upland cotton, and sorghum using Pearson linear correlation and Kendall's tau....

Purpose – The Agricultural Resource Management Survey (ARMS) conducted annually by the USDA's Economic Research Service collects data on US agriculture, ranging from production practices to the financial condition of farm and ranch enterprises and the farm household. The purpose of this...

As agriculture becomes more industrialized, the role of risk measures such as value-at-risk (VaR) will become more utilized. In this case it was applied to geographical diversification and also modifying the traditional VaR estimation by incorporating a copula dependence parameter into the VaR...

Purpose – The purposes of this paper are to determine the financial, structural, and tax policy factors that influence the probability of buying machinery and the intensity of the machinery purchases on North Dakota farming operations. Design/methodology/approach – A double hurdle model was...

Purpose – Portfolio theory suggests that geographical diversification of production units could potentially help manage the risks associated with farming, yet little research has been done to evaluate the effectiveness of a geographical diversification strategy in agriculture. The paper aims...